| Summary of Leasing Activity |
The following table sets forth the components of our lease revenues for the three and six months ended June 30, 2020 and 2019 (dollars in thousands, except for footnotes):
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For the Three Months Ended June 30, |
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For the Six Months Ended June 30, |
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2020 |
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2019 |
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2020 |
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2019 |
Fixed lease payments(1)
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$ |
12,350 |
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$ |
8,332 |
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$ |
24,612 |
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$ |
16,105 |
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Variable lease payments(2)
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288 |
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30 |
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3,306 |
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87 |
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Lease revenues, net(3)
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$ |
12,638 |
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$ |
8,362 |
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$ |
27,918 |
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$ |
16,192 |
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(1) |
Fixed lease payments include contractual rents under lease agreements with tenants recognized on a straight-line basis over the respective lease terms and includes the amortization of above-market lease values and lease incentives and the accretion of below-market lease values and other deferred revenue. |
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(2) |
Variable lease payments include participation rents, which are generally based on a percentage of the gross crop revenues earned on the farm, and reimbursements of certain property operating expenses by tenants. Participation rents are generally recognized when all contingencies have been resolved and when actual results become known or estimable, enabling us to estimate and/or measure our share of such gross revenues. During the three and six months ended June 30, 2020, we recorded participation rents of approximately $44,000 and $74,000, respectively, and reimbursements of certain property operating expenses by tenants of approximately $244,000 and $422,000, respectively. During the three and six months ended June 30, 2019, we recorded participation rents of approximately $0 and $27,000, respectively, and reimbursements of certain property operating expenses by tenants of approximately $30,000 and $60,000, respectively. In addition, during the six months ended June 30, 2020, we received a lease termination payment of approximately $3.0 million.
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(3)
Reflected as a line item on our accompanying Condensed Consolidated Statements of Operations and Comprehensive Income.
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